A negative session for Asia-Pac equities....>

US TSYS: A negative session for Asia-Pac equities on lingering trade war worry

has helped to keep the downside in core global bonds limited. Chinese state

media has kept its recent volley of rhetoric against the U.S. going, the latest

notable headline to cross BBG was "U.S. Doomed To Fail If It Acts Arbitrarily On

Trade" and came via a commentary piece in China's state-owned People's Daily.

- This was after a poor 7-Year auction, coupled with the S&P 500 recovering its

200-DMA (though still finishing the day comfortably lower) amid suggestions that

month-end pension fund flows were being put to work weighed on Tsys late

Wednesday. Elsewhere, Special Counsel Mueller formally announced his resignation

from the role, recounting the findings of his investigation. Despite some

semi-accusatory language re: President Trump, the speech held no "smoking gun."

This probably added to the weight on the space.

- T-Notes last -0-09+ at 125-10+, with 10-Yr yields last at 2.266%. FVN9 116.00

puts were once again in demand during Asia hours, with some selling of the TYN9

124.75 puts also seen. Eurodollar futures trade unch.-5.0 ticks lower thru the

reds. Focus moves to a speech from Fed Vice Chair Clarida & Q1 GDP (2nd est.).